Vietnamese flat steel producer Formosa Ha Tinh Steel (FHS) has announced price hike for its finished flat steel products for March shipments. Following a sharp hike in international HRC and iron ore prices, the steelmaker also revised domestic prices on the back of demand recovery from auto sector.
The steelmaker announced a $65-70/mt hike for HRC products for March shipments. Revised offers for HRC (SAE 1006) are around $710-715/mt fob or $720-725/mt cif. HRC for pipe making and SS 400 HRC are offered at $710-715/mt cif.
In the domestic market, FHS is offering the same grade in the north of Vietnam at VND16,000,000/mt ($695/mt) while in the southern region at VND15,500,000/mt ($675/mt) as per industry sources. These prices are submitted to revision as per demand variation in the market. Prices could rise more in the coming days on sustainable demand.
Vietnamese HRC exports has shot up as demand from Southeast Asian buyers is strong, boosting prices. Chinese HRC (SAE 1006, 2 mm) was imported in Vietnam at $690-700/mt cfr Vietnam in early-January before the cold wave hit China, pulling HRC futures down.
Indian HRC prices are also strong of late, due to healthy domestic and global demand. High input cost on high raw materials, too, pushed prices up. Indian primary mills offered HRC at $745-750/mt cfr Vietnam while in the domestic market, HRC prices are at an all-time high of Rs58,000/mt ex-Mumbai on Monday, rising by 55pc from Rs37,500/mt ex-works from 1,January 2020.